June 14, 2010
Risk Appetite Returns Sending Equity Markets Higher
U.S. equity markets are trading higher overnight as investors are buying on speculation that government reports this week will show the global economic recovery is back
on track. Easing of tensions in Europe is triggering a short-covering rally in the Euro which is helping to lead to increased demand for higher risk assets.
This week, U.S. traders are expecting to see positive reports in Industrial Production and factory output. Traders are expected to look at the long side of the market
this morning in anticipation of strong economic results from both of these reports.
On Friday, stock indices rose despite mixed economic data. It was reported that U.S. Retail Sales for the month of May were negative and well below the consensus of a
0.2% gain. This news initially broke the equity markets but the lack of follow-through to the downside led to a quick short-covering rally by the mid-session and a sharply higher close.
Late Friday morning it was …
